The Gold Economy

Babak submits:

About two weeks ago we looked at several measures of gold sentiment. The cross currents were a bit confusing but the DSI stood out since it was at the highest level of bullishness ever for that indicator since its inception in 1987! My final opinion was to defer to the parabolic nature of price and stand aside for a correction.

The precious metal finally succumbed to selling pressure and fell along with the already weak equity markets. To be honest, I haven’t really given gold enough credit during its impressive bull run these past few… Continue reading

Macro Man submits:

In the wake of the great inflation/deflation debate, we had better take a look at gold, which appears to be denying the deflation leg of the argument and is now leaping directly to the "inflation should occur somewhere down the road and metal is only currency they aren’t printing and so is store of value, etc." argument.

Even though all of that makes sense, I still can’t quite come to grips with buying the stuff now, as I have just had my TDI (Taxi Driver Indicator) triggered on the way home last night, "you gotta be long… Continue reading

Cliff Wachtel submits:

For the past and coming weeks, to predict moves in gold and the US dollar, watch the euro, for volatility in the euro is what is driving both gold and the dollar. That’s the asset that is showing the most volatility and markets are watching it, and for good reason. In the past month the EU debt crisis has proven to even the doubters that it is indeed the primary threat to the global economy and banking system, and further deterioration will leave no one unscathed.

Recently, The Euro Is The Prime Driver Of Gold

Complete

Market Folly submits:

This year’s Ira Sohn Conference was packed with investment presentations from heavy hitting hedge fund managers including Seth Klarman, David Einhorn, Bill Ackman, David Tepper, Larry Robbins and more. Like the Value Investing Congress (in-depth notes from that recent event here), you get a plethora of ideas from top talent. Presentations at Ira Sohn in years past include Greenlight Capital’s David Einhorn blasting Lehman Brothers before it failed and Pershing Square’s Bill Ackman detailing his bullish stance on shares of General Growth Properties (GGP)… Continue reading